UK growth downgraded to 1% in 2027 due to ‘global economic storms’

• The Office for Budget Responsibility has upgraded UK GDP growth forecasts for this year to 1.2 per cent, up from a previous estimate of 1.1 per cent.
• Economic growth projections for 2027 have been cut sharply from 1.6 per cent to 1.0 per cent amid rising inflation and global fallout from the war on Iran.
• Growth is expected to recover in subsequent years, reaching 1.6 per cent in 2028, 1.8 per cent in 2029, and 1.7 per cent in 2030.
• Chancellor John Healey confirmed a reduction in UK fiscal headroom to £15 billion in 2029/30 following a £14 billion surge in debt interest costs.
• The watchdog warned that persistent economic shocks since 2008 have led to weak growth and elevated levels of government debt.

IN FULL

UK growth forecast slashed to 1% for next year. Here’s how it could affect you